Total Quality Management (TQM) Strategy and Organizational Characteristics: Evidence from a Recent WTO Member

Abstract:

This paper presents a
comparative study on the relationship between implementing total quality
management (TQM) and organisational characteristics (size, type of industry,
type of ownership, and degree of innovation) in a newly industrialised country
in South East Asia. Vietnam has become the 150th member of the World.Trade
Organisation (WTO) since January 2007, and this is the first empirical studyto
examine TQM practices in Vietnam. Analysis through Structural Equation
Modelling, t-test and MANOVA of survey data from 222 manufacturing and service
companies produced three major findings.

First, this study supports
previous research findings that TQM can be considered as set of practices.
Second, industries in Vietnam have deployed certain TQM practices (customer
focus and top management commitment) at much higher levels than others, namely
information and analysis system, education and training, employee empowerment,
and process management. Finally, MANOVA shows a clear difference in TQM
practices by company size, industry type, and degree of innovation. Large
companies had higher implementation levels across almost all practices except
for teamwork and open organisation when compared to small- and medium-sized
companies.

TQM
practices were statistically more significant in manufacturing companies
compared to service companies,and firms having a higher degree of innovation
also showed higher levels of TQM practice implementation.In particular, the low
deployment of TQM practices in service industries,where TQM has been considered
as orderqualifier,highlights the challenges for Vietnam’s service industries
that pursue TQMto successfully compete in the global marketplace.

59.Pinho, J.C. (2008). TQM and
performance in small medium enterprises: The mediating effect of
customerorientation and innovation. International Journal of Quality &
Reliability Management,25(3), 256–275.